It also extends range of terms to include 15 and 20 years
Digital mortgage lender Perenna has announced a reduction in pricing for its flexible long-term fixed rate mortgage range by up to 50 basis points (bps), alongside the extension of its range of terms, now offering options for 15 and 20 years.
The revised pricing means that Perenna’s flexible long-term fixed rate mortgages now start at 4.99%, applicable to loans at up to 40% loan-to-value (LTV), with a product fee and fixed for a period of 15 to 20 years.
Furthermore, Perenna has adjusted its purchase products for LTV ratios of 95% and 90%. The new rates stand at 5.99% and 5.76%, respectively, down from the previous 6.04% and 5.90%. The rates are applicable to mortgages with a term of 25 to 30 years, along with a product fee.
Perenna made its debut in the mortgage market in the fourth quarter of 2023, introducing its flexible long-term fixed rate mortgage. This offering, Perenna said, offers increased affordability by eliminating reversion stress tests, providing stability through a fixed rate for the entire term and flexibility with early repayment charges capped at five years.
Just recently, the lender also introduced a flexible long-term fixed rate retirement interest-only mortgage.
“Our flexible long-term fixed rate mortgage provides a great option for consumers who are looking for the complete mortgage product – increased affordability, rate stability, and flexibility through short ERCs – you remortgage when and if it is good for you, not at the wrong time,” said Colin Bell (pictured), co-founder and chief operating officer at Perenna.
“With Consumer Duty now in place, brokers will see this product as an antidote to the ‘possible foreseeable harm’ placed on borrowers by traditional short-term fixed rate products.”
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